Podcast
Questions and Answers
What is the key difference between intraday and delivery trading?
What is the key difference between intraday and delivery trading?
What is a margin in trading?
What is a margin in trading?
What is an example of delivery trading?
What is an example of delivery trading?
What is the main difference between intraday and delivery trading?
What is the main difference between intraday and delivery trading?
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What is a margin in intraday trading?
What is a margin in intraday trading?
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What is the difference between intraday and delivery traders in terms of brokerage fees?
What is the difference between intraday and delivery traders in terms of brokerage fees?
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Study Notes
Intraday Trading Vs Delivery-Based Trading: Understanding the Differences
- Intraday trading involves buying and selling shares on the same day, while delivery trading allows investors to keep the shares they purchase for as long as they like.
- In intraday trading, the net holding position is zero, while in delivery trading, investors assume ownership of the shares they purchase and keep them in their Demat account.
- Intraday trading is a strategy used to generate gains by capitalizing on stock index movement, while delivery trading is used to hold onto shares until the right time to sell them for a profit.
- Intraday traders use real-time charts to monitor price movements and often employ short-term intraday charts, while delivery traders hold onto their shares until they are ready to sell.
- Intraday traders take significant risks, and brokerage fees can eat away at their profits, while delivery traders have more time to wait for the right opportunity to sell and may pay lower brokerage fees.
- Margins are trading loans that brokers provide their clients, and they can be used to increase potential returns on investment in intraday trading.
- Intraday traders can get more margin from brokers than delivery traders because there is an assurance of trading getting settled on the same day.
- Intraday trading requires setting up a trading account online and clarifying that orders are for intraday trading, while delivery trading takes place in an investor's trading account and involves trading in shares that are already in a Demat account or that will be credited to one.
- In an example of intraday trading, an investor purchases 1,000 shares of ABC Ltd. for ₹ 200 per share and sells them for ₹ 220 per share on the same day, earning a profit of ₹ 20,000.
- In an example of delivery trading, an investor purchases 10,000 shares of ABC Ltd. at ₹ 100 per share and sells them for ₹ 135 per share four months later, earning a profit of ₹ 350,000.
- The key difference between intraday and delivery trading lies in trading margins, which can help increase potential returns on investment in intraday trading.
- Intraday traders should approach trading with caution and be prepared to take significant risks, while delivery traders should have a long-term investment strategy and be prepared to wait for the right opportunity to sell their shares.
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Description
Do you know the difference between intraday trading and delivery-based trading? If you're interested in the stock market, it's essential to understand these two popular trading strategies. In this quiz, you'll learn the key differences between intraday and delivery-based trading, including trading margins, risks, and potential returns on investment. Test your knowledge and see how well you understand the world of trading. Take the quiz now and see if you're a trading pro!
